Argentina and YPF Oppose Use of U.S. Discovery in Prospective ICSID Arbitration
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TL;DR
- Argentina and YPF requested a U.S. court to block use of discovery documents in future ICSID arbitration.
- The request targets Petersen and Eton Park, funded by Burford Capital.
- The discovery materials were originally gathered for U.S. litigation over the 2012 YPF expropriation.
- No ICSID arbitration has yet been formally initiated by the funds.
Overview
Argentina and its state-controlled oil company YPF have petitioned a federal court in New York to prevent investment funds Petersen and Eton Park from reusing materials gathered during U.S. litigation in any future arbitration before the International Centre for Settlement of Investment Disputes (ICSID) stemming from YPF's 2012 expropriation.
What Happened
Represented by Sullivan & Cromwell, Argentina and YPF argued to Judge Loretta Preska that a court-approved agreement restricts the use of discovery materials solely to the U.S. litigation.
The defense stated that the agreement, endorsed nearly six years ago, is still valid and was supported by a favorable appellate court ruling for Argentina.
They emphasized that the order expressly prohibits using the documents outside the current case-including in any future legal proceedings.
The move reacts to Petersen and Eton Park-which are backed by Burford Capital-considering an arbitration against Argentina at ICSID, though such a case has not yet been formally filed.
Context
The dispute centers on the aftermath of YPF's 2012 expropriation and arises after a New York appeals court overturned a first-instance judgment against Argentina for more than $16 billion.
Following this reversal, the claimant funds are exploring further actions both in U.S. courts and through potential international arbitration.
ICSID, as a World Bank institution, adjudicates investor-state disputes, but still requires enforcement by national courts.
Why It Matters
- The petition seeks to preserve the confidentiality of sensitive material obtained in U.S. litigation.
- Preventing the use of discovered documents could limit the evidentiary basis for any future ICSID arbitration relating to YPF's expropriation.
- The case highlights procedural intersections between U.S. litigation and international arbitration mechanisms.